Distributed Bulk Storage: Is This the New Shape of the Grid?

Central versus distributed storage has been an ongoing debate. Each has its pros and cons. There are instances where the advantage of one over the other is obvious — such as central bulk storage at geological sites where caverns or water reservoirs with different elevations are almost readily available. The real question is: which one would the market or investors prefer when no geological advantages are readily available? Traditionally, two key advantages have kept hopes high for central storage: lower cost per kWh and availability in large GWh scale. Both of these key advantages were challenged, if not shattered, in the last year. Tesla Motor’s $5 billion GigaFactory is being built to deliver li-ion batteries, 15 GWh/year of which is dedicated for stationary applications. There is no doubt that this and similar investments will accelerate the already declining battery co...